MOCCA DC – Marketing Operations

July 18, 2012

Marketing Operations as a B2B discipline is rapidly growing.  As one data point that supports its growth, we had our largest attendance to date for today’s MOCCA meeting in Washington DC with Andrew Gaffney and Amanda Batista of Demand Gen covering recent readership survey results on trends in marketing measurement, changes in b2b buyers, and shifts in content preferences.  Rather than rehash the survey results which are available on DemandGen’s website, here are 4 key takeaways from our hour long question and answer session that followed the presentation:

  • Content:  this area was the theme and background of DemandGen, so it was not a surprise to hear this topic come up.  We spent considerable time discussing the pros and cons of webinars, both live and recorded, and came to the conclusion they are a worthy, cost effective tactic to consider as part of the overall marketing mix.  With today’s integration in marketing automation platforms, there are more benefits reporting wise to use webinars versus in years past.  Video is also a tactic that can be repurposed toward mobile devices and non-mobile devices.  There were a few audience members who suggested that having  4 videos of 5 minutes each were more powerful than one 20 minute video and easier for a buyer to digest.

 

  •        Data Warehouse:  this is an emerging area for enterprise companies that are trying to do data manipulation and more sophisticated reporting.  B2B companies are realizing a shortcoming of their CRM systems and marketing automation systems in terms of lack of data reporting flexibility.  Thus, they are looking to front end load their systems with a data warehouse that interoperates with disparate data sets and can do sophisticated reporting through easier manipulation of data.

 

  • Mobile:  this area remains an enigma for b2b marketers (my data points extend beyond this session with the CMOs of both Cisco and Xerox confirming this same data).  Contrary to what is happening in the market, marketers are just not yet ready to think about rendering b2b campaigns in mobile, either through their marketing automation platform or through companies like Litmus Technologies.  One company mentioned it was beginning to source 15% of its lead flow (not web traffic) from mobile devices yet the majority were not optimizing campaigns or content specifically toward mobile devices.  There are likely too many other competing priorities for marketers to be focused on, thus crowding out mobile for the moment.  Everyone knows they should be doing it (like working out at a gym), but few actually do it.

 

  •        Reporting:  the majority of companies were at the early stages of connecting marketing investment to new revenue struggling with both systems as well as cultural – cultural meaning does marketing ‘source’ revenue or do they ‘influence’ revenue.  The theory models would suggest marketing does both, but not every culture absorbs that methodology.

We didn’t have time to cover it, but data and its accuracy seems to be the next hot topic for MOCCA to talk about.  What areas in marketing operations are you seeing that is hot?

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Raising Campaign Effectiveness via Mobile

January 28, 2012

There are 3 key steps in raising email campaign effectiveness via mobile devices.

Mobility is playing an increasingly important role in reaching prospective customers for companies.  Studies show and my own recent customer data indicate that 9% to 30% of web (not campaign) global views are done on mobile devices – and one would expect campaign performance to follow suit.  However, companies on the B2B side are missing strategies  to reach these mobile devices – a key question to ask is, ‘are the campaigns sent actually viewed by an end user?’  Consequently, campaigns not optimized for mobile devices may not get viewed due to poor display or performance – no conversion means no revenue and that is a conundrum to avoid.

To my surprise, some of the B2B marketing automation toolset vendors in my studies do not have a deep level of mobile capability– in fact I have found a few vendors that have no ability to check the rendering (display) of email campaigns on different platforms, different email clients, or different devices.  Consequently, what may look really great to a creative marketer may make no sense to an end user, and therefore no conversion happens!

STEP 1 – inventory how large your mobile audience is.  Tools like Litmus, polling subscribers, adding a link to your campaigns specific to a mobile version to see how it works, adding a mobile option to the subscription page, looking at your Google Analytics statistics are just a few ways to start.

Step 2 – Optimize content for the device experience– flash does not usually work on all mobile devices.  Studies show that 70% of mobile searches are within 1hr of need, compared to 1 month on the desktop. Mobile users have different priorities, operate in a different context, have more distractions and less time.  Litmus may be a good solution here as well.

Step 3 – Measure campaign performance.  Companies like ReturnPath which is more on the B2C side versus pure B2B has tools like Campaign Insight and Campaign Preview, when combined allow an end user to see which campaigns are working and why in addition to checking for rendering.

There are other strategies that can augment mobile devices such as an SMS strategy, though that kind of advertising is specific to a mobile phone vs. a tablet device.  Take a measured approach when considering a campaign strategy that reaches mobile devices.


CMO Roundtable @Velocidi

July 20, 2011

Along with 35 others, I participated in a terrific CMO roundtable hosted by digital agency @Velocidi moderated by @MargaretMolloy in NYC.  @JeffreyHayzlett, the recent head of marketing for Kodak and current head of The Hayzlett Group, was our guest speaker for heads of marketing in a variety of B2B and B2C companies.  Velocidi is the next generation digital agency leader in NYC with global offices and definitely a company to keep an eye on what’s happening next in the digital marketing space.

The topic of conversation was CMOs – what are the key issues we face and was based on some research Jeff had completed.  He had several areas that were important to consider as part of his research and he prompted breakout sessions to validate (or not validate) the research based on our own experiences.  In our breakout session, we had 4 takeaways that were mostly business oriented vs. marketing tactic oriented:

  • Be accountable to ROI – this was a reaffirmation of the research findings, though there was some side debate about ‘just because something could be measured, doesn’t necessarily mean it needs to get measured’.   There was also some side debate about the actual connection to some activity to meaningful results as there is not always a 1 for 1 correlation.
  • Be the steward of change and growth – swing for the fence when culturally appropriate.  The visual of ‘swing for the fences’ seemed to resonate well with others.  Although there was some debate about the degree a company could change, there was no debate that the CMO had to be the steward of the process.
  • Have courage in making tough decisions.  Whether it be people that work for the team or with the team, this element seemed to be a really important area for those that were responsible for implementing change in the organization.
  • Plan for a 3 month to 12 month horizon rather than do an extended planning process.  Technology is changing too quickly to plan beyond this time frame.   Be prepared to adapt people and processes for this planning horizon – there was a published article  in Marketing Week that reaffirmed this view.

It was an excellent conversation.   What have you found in your experiences?


B2B Freemiums

June 30, 2011

Recently, I had a dialogue with a colleague in Silicon Valley who asked me about my experiences with B2B Freemiums as she thought through new distribution models for her product.  It made me reflect for a moment about some of my more recent experiences about giving away an aspect of my product in the hope of getting more revenue.

Let’s assume we can tie the Freemium to actual revenue production – meaning the systems are built to track and trend that soon to be customer activity from download of software to close of revenue.  With no systems in place, you may as well nix a Freemium strategy in terms of measuring its success!

In my experience, a large majority of my inbound unqualified inquiries (meaning people with interest in my product offer) came from the Freemium offer, although the product offer itself had more B2C characteristics than a traditional B2B sale.  My conversion rate was in line with industry rates that appear to range from 1% to 13% depending on the source.  Here are 5 examples I dug up that could be considered a B2B benchmark for Freemiums:

  • Evernote 5.6% conversion rate on their two year user cohort, but note that the conversion rate on new users is much lower, likely SMB or consumer users.
  • Logmein 3.8% conversion rate, likely SMB users.
  • Heroku 1-2% ratio of paid-to-free users when it was about 50,000 apps in size
  • MailChimp –13% of users paying.  Having competed against MailChimp, their users are likely SMB and consumers.

So let’s say you had 2,000 inquiries/month, of which 2.5% used a Freemium at an average sales price of $10k/month – $500k/month revenue = $6M/yr on a very reduced customer acquisition cost if customers are able to buy via the web.

So that’s pure math…but let’s ask 4 key questions as you develop your B2B Freemium strategy:

1.  Will your buying entity see value in a freemium?

Companies are not as price sensitive as individuals. How large is your average selling price and your buying entity?  In the examples above, I do not have clear average revenue metrics, but by experience, an upper limit of value was in the $30k/yr range or lower – which may be in line with many cloud based applications.

2.  Can you get away with low acquisition and support costs?  Meaning, no support!

3.  Can you use the freemium as a low cost inquiry or cost of acquisition vs. traditional means?  If one were to look at customer acquisition costs, sales cold calling is very expensive/ineffective, targeted marketing less expensive, freemium is the least expensive.

4.   Companies do not virally spread a freemium offering and word of mouth is key.  How will you get others to talk about your freemium outside your community?  Freemium is all about scale, so you’ll need to assess the potential customer segment size for such an offer.

I think it is definitely worth testing the Freemium concept in a B2B environment.

What has your B2B Freemium experience been?


Mobility Enterprise Trends via Gartner

June 7, 2011

Today I attended Gartner Group’s Mobility/Security seminar at the Harvard Business Club in NYC by @mobilephillip and others – I attended because as  a marketer, it’s important to understand where the puck is going and mobility is where it is headed (plus I have a mobility background).  There were about 100 people representing a variety of enterprises struggling with how to best address the needs of the mobile user.  When one thinks back even 5 years ago, iPads, iPhones, Droids and other technologies were either pre-birth or at their very infancy.  With the adoptions of these new platforms so rapidly, users are struggling with corporate IT policies that are non-mobile friendly as well as enterprises are struggling with strategies to securely lock down the information on these mobile devices.  The mobile devices are marketers dreams in that they now have a way to target very specifically what a user needs or does.

Beyond new technology areas that are expanding for companies like Sybase, McAfee, and others, here were my key take aways from today’s discussion:

  • There are over 2B phones and mobile devices today;  over 80% of new phones sold globally are Smartphones
  • US refresh cycles (ie replacing mobile phones) are on a two year rhythm, whereas in Asia they either have multiple phones or replacing every 6 months to a year
  • In 5 years, Android will be THE operating system with 50% market share;  of the 6 operating systems today, it’s the FASTEST growing operating system.  This is worthy of marketing/sales attention.
  • iPhone (iOS) will have a difficult time penetrating above 25% market share due to manufacturing capacity issues (chipsets among others).  Meaning, this technology may be better B2C suited than B2B.  What’s new news is the capacity constraints of manufacturing.
  • iPhone (iOS) will be challenged to successfully penetrate the enterprise as their updates to software typically involve iTunes, not over the air updates
  • Blackberry Enterprise Services are most deeply penetrated in the enterprise.  (BES as commonly referred).  Recently, Blackberrrry announced it will support other devices other than Blackberry’s on the server, however, it looks like the press release is more vapor than reality
  • Android is the least secure mobile device with high risk of data loss should a device get misplaced or lost;  3rd party applications are almost always needed with Android
  • Apple iOS yesterday announced a free instant messaging service (MobileMe – what is new is the ‘free’ element), which hits at the heart of carriers who make millions off SMS/MMS platform services.  The enterprise opportunity will be class of services in messaging.
  • Younger generations expect enterprises to be ‘mobile ready’ yet they are not;  ironically, my feeling is colleges are not ‘mobile ready’ and do not cater to the mobile generation.

What are you seeing with mobile devices in your enterprise?